Roxy Square in Katong Up for Collective Sale at $1.25 Billion
Roxy Square, a freehold mixed-use development in the vibrant Katong area, is now on the market for a collective sale with a minimum asking price of $1.25 billion. This translates to a land rate of $2,094 per sq ft per plot ratio (psf ppr), inclusive of a land betterment charge (LBC), as announced by marketing agent JLL.
The LBC is a fee developers pay for the right to enhance the use of a site or to build larger projects on it. Roxy Square, built in three phases from the early 1980s to 2000, includes the Roxy Square Shopping Centre with 296 shops and 26 apartments, and the Grand Mercure Roxy hotel with 576 rooms.
Owners of retail shops can expect proceeds ranging from $579,000 to $19.9 million, while residential owners may receive between $1.55 million and $2.77 million, according to a JLL spokesperson.
Benefits for Meyer Blue Condo and Emerald of Katong Owners
For owners at Meyer Blue Condo and Emerald of Katong, the sale of Roxy Square signals a promising development trend in the area. This could significantly enhance property values and inject new vibrancy into the neighborhood, making it even more attractive to potential buyers and investors.
Development Opportunities and Market Impact
Roxy-Pacific Holdings, which owns 52 retail shops in Roxy Square Shopping Centre and the Grand Mercure Singapore Roxy, stands to benefit significantly from this sale. The Urban Redevelopment Authority (URA) has zoned the site for commercial, residential, and hotel use under the 2019 Master Plan. However, the entire site might be rezoned for commercial and residential use, allowing for the development of a high-rise mixed-use project.
Subject to URA’s approval, the future project could potentially feature over 350 residential units and approximately 80,000 sq ft of retail and food and beverage space. The remaining 172,000 sq ft of gross floor area could be allocated for office, hotel, or other commercial uses.
Strategic Location and Future Prospects
Located near the Marine Parade MRT station, the future Roxy Square project may offer direct access to the station concourse, integrating it into an underground pedestrian network with retail shops. This prime location is a significant advantage for homeowners and investors in Meyer Blue Condo and Emerald of Katong, providing convenience and enhancing the overall living experience.
According to Mr. Tan Hong Boon, executive director of capital markets at JLL Singapore, mixed-use developments have been gaining popularity among home buyers. The strategic location and potential connectivity to public transport make such projects highly desirable.
Encouraging Market Trends
The recent success of other mixed-use developments, like Delfi Orchard and Shenton House, has spurred interest in the commercial collective sale market. Delfi Orchard sold for $439 million, while Shenton House was acquired by IOI Properties Group for $538 million.
Additionally, Katong Plaza, another mixed-use site with 132 retail units and 14 residential apartments, was launched for collective sale at $188 million. This translates to a land rate of $1,901 psf ppr, showcasing the strong demand for prime development sites in the Katong area.
Conclusion
The collective sale of Roxy Square is a significant event for the Katong area, offering exciting opportunities for property owners, developers, and investors. For Meyer Blue Condo and Emerald of Katong residents, this development promises to enhance property values and improve the living environment, making it an excellent time to invest in or hold onto properties in this thriving neighborhood.
